press release

Chevron Revises 1997 Net Income To $3.256 Billion

CHEVRON REVISES 1997 NET INCOME TO $3.256 BILLION TO INCLUDE $54 MILLION CHARGE FROM AFFILIATE NGC CORP.

SAN FRANCISCO, Feb. 3, 1998 -- Chevron Corp. today announced that preliminary net income for the fourth quarter and year 1997 was revised to include a special charge arising from the company's 28 percent equity interest in NGC Corp. (NGC).

NGC reported earlier today that its 1997 income was reduced by charges totaling $194 million, primarily as a result of a planned restructuring in its natural gas liquids and crude oil business.

Chevron's share of these charges was $54 million, which reduced preliminary net income to $875 million ($1.33 per basic and diluted share) for the fourth quarter and $3.256 billion ($4.97 per basic share or $4.95 per diluted share) for the year 1997. U.S. exploration and production net earnings were reduced to $265 million for the fourth quarter and $1.001 billion for the year 1997.


View 4th Quarter and Year 1997 Earnings issued 1/22/98


CHEVRON CORPORATION - FINANCIAL REVIEW
(Millions of Dollars)

CONSOLIDATED STATEMENT OF INCOME
(unaudited)

Fourth Quarter

Twelve Months

REVENUES:
1997


1996


1997


1996

Sales and Other Operating Revenues (1) $9,712 $11,265 $40,583 $42,782
Income from Equity Affiliates 153 81 688 767
Other Income 390

165

679

344


10,255

11,511

41,950

43,893

COSTS AND OTHER DEDUCTIONS:
Purchased Crude Oil and Products 4,599 6,109 20,223 22,826
Operating Expenses 1,303 1,719 5,280 6,007
Selling and Administrative Expenses 496 334 1,533 1,377
Exploration Expenses 205 126 493 455
Depreciation, Depletion and Amortization 657 603 2,300 2,216
Taxes Other Than on Income (1) 1,512 1,550 6,307 5,908
Interest and Debt Expense 85

90

312

364


8,857

10,531

36,448

39,153

Income Before Income Tax Expense 1,398 980 5,502 4,740
Income Tax Expense 523

516

2,246

2,133

NET INCOME $ 875

$ 464

$3,256

$2,607


PER SHARE AMOUNTS
Earnings - Basic $1.33 $ .71 $4.97 $3.99
Earnings - Diluted $1.33 $ .71 $4.95 $3.98
Dividends $ .58 $ .54 $2.28 $2.08

Average Common Shares Outstanding (000's) 656,953 653,019 654,991 652,769

EARNINGS BY MAJOR OPERATING AREA
(unaudited)

Fourth Quarter

Twelve Months



1997


1996


1997


1996

Exploration and Production
United States $ 265 $ 388 $ 1,001 $ 1,087
International 261

409

1,252

1,211

Total Exploration and Production 526

797

2,253

2,298

Refining, Marketing and Transportation
United States 156 (88) 601 193
International 139

(172)

298

226

Total Refining, Marketing and Transportation 295

(260)

899

419

Total Petroleum Operations 821 537 3,152 2,717
Chemicals 63 36 228 200
Coal and Other Minerals 11 11 48 46
Corporate and Other (2) (20)

(120)

(172)

(356)

NET INCOME $ 875

$ 464

$3,256

$2,607


(1) Includes consumer excise taxes $1,326 $1,357 $5,574 $5,202
(2) "Corporate and Other" includes interest expense, interest income on cash and marketable securities, corporate center costs, and real estate and insurance activities.

SPECIAL ITEMS BY MAJOR OPERATING AREA
(unaudited)

Fourth Quarter

Twelve Months



1997


1996


1997


1996

U. S. Exploration and Production $ (3) $ (30) $ 29 $ (22)
International Exploration and Production (4) 76 55 69
U. S. Refining, Marketing and Transportation (18) (60) (61) (97)
International Refining, Marketing and Transportation 6 (201) (69) 59
Chemicals 22 - 4 (28)
Coal and Other Minerals - 1 (2) (2)
Corporate and Other * 65

(7)

120

(23)

Total Special Items $ 68

$ (221)

$ 76

$ (44)



SUMMARY OF SPECIAL ITEMS
(unaudited)

Fourth Quarter

Twelve Months



1997


1996


1997


1996

Asset Dispositions $156 $ 95 $183 $391
Asset Write-offs & Revaluations (132) (289) (140) (337)
Environmental Remediation Provisions - (1) (35) (54)
Prior-Year Tax Adjustments 54 - 152 52
Restructurings & Reorganizations (6) 3 (6) (14)
LIFO Inventory (Losses) Gains 5 (4) 5 (4)
Other, Net (9) (25) (83) (78)
Total Special Items $ 68

$(221)

$ 76

$ (44)


FOREIGN EXCHANGE GAINS (LOSSES) $190 $(12) $231 $(26)

EARNINGS BY MAJOR OPERATING AREA
EXCLUDING SPECIAL ITEMS
(unaudited)

Fourth Quarter

Twelve Months



1997


1996


1997


1996

Exploration and Production
United States $ 268 $ 418 $ 972 $1,109
International 265

333

1,197

1,142

Total Exploration and Production 533

751

2,169

2,251

Refining, Marketing and Transportation
United States 174 (28) 662 290
International 133

29

367

167

Total Refining, Marketing and Transportation 307

1

1,029

457

Total Petroleum Operations 840 752 3,198 2,708
Chemicals 41 36 224 228
Coal and Other Minerals 11 10 50 48
Corporate and Other * (85)

(113)

(292)

(333)

Earnings Excluding Special Items 807 685 3,180 2,651

Special Items 68

(221)

76

(44)

Net Income $ 875

$ 464

$3,256

$2,607


* "Corporate and Other" includes interest expense, interest income on cash and marketable securities, corporate center costs, and real estate and insurance activities.

Updated: February 1998